A day after hinting at supporting steady interest rates, Federal Reserve Bank of Boston President Susan Collins said she has not yet made up her mind on how to vote at the Fed’s December policy meeting.
“I have not made a decision, I don’t make a decision before I actually get to the meeting,” Bloomberg quoted Collins’s remarks to reporters Saturday on the sidelines of the Boston Fed’s annual economic conference. “There’s still data that’s coming.”
Inflation risks
Collins, who will vote for the Fed’s December outcome, had earlier said that she was hesitant to cut interest rates at the upcoming meeting, as inflation remains high and current policy is only mildly restrictive.
Since the Fed’s last meeting in October, the Boston Fed chief is among many policymakers voicing similar concerns, leading up to a potentially contentious Federal Open Market Committee meeting scheduled for Dec. 9-10. The rising opinions on either opposing or doubting another rate cut caused investors to scale back their expectations for a reduction in December.
This sentiment shifted again on Friday after New York Fed chief John Williams mentioned there could be scope to lower interest rates soon. Williams is considered a close ally of Chair Jerome Powell.
On Saturday, Collins reiterated her view that current policy was only mildly restrictive and that she saw upside risks to inflation. Maintaining rates at a mildly restrictive level, she added, would help ensure inflation continues to decline.
“I do see reasons to be hesitant” on cutting rates further, she was quoted as saying.
Small businesses raise inflation worries
Collins mentioned that small businesses across her district have expressed concerns about increasing prices and policy instability, pointing out that some regions still face significant challenges.
She also highlighted that the labour market has notably cooled in recent months and stated she would keep an eye out for further signs of decline. Collins noted that hidden issues within the overall figures include a rise in unemployment among young, college-educated workers, which “can have real implications” for the economy.
“There are risks on the employment side,” she said. “If I saw evidence of more softening and weakness, I would take that seriously.”
Fed’s October meeting outcome
The Jerome Powell-led US Federal Reserve announced a 25-basis-point interest rate cut to the range of 3.75%-4.00% following its two-day policy meeting, which concluded on Wednesday, October 29, 2025.
The central bank also announced it will now concentrate on managing risks in the US economy, considering the changing outlook and incoming data to better guide the future direction of key interest rates.
The September 2025 rate cut was the first since December 2024 and also the first since the return of US President Donald Trump to the White House.
The US Fed’s rate cut in September increased market expectations that the central bank will lower its main lending rates again in 2025, despite the ‘somewhat elevated’ inflation in the economy.